Estate Planning & Preservation
Grannis & Hauge’s attorneys have helped many thousands of clients develop appropriate estate plans and administer probate estates,
guardianships and conservatorships. What kind of an estate plan a client needs depends on many factors, some of which are discussed
below.
Family Matters
If you have minor children, a will identifies whom you want to care for your children in the event you and your spouse die. Second
marriages, blended families, special needs family members and the possibility of young adults inheriting substantial amounts create
estate planning challenges which can be addressed by wills, a variety of trusts and prenuptial agreements.
Business Interests
If you are an owner in a closely-held business, you have no doubt wondered whether the business would survive and whether your family
and your investment would be protected in the event of your death. Estate planning combined with succession planning can address
those concerns.
Avoidance of Estate Taxes
In 2001, Congress passed a tax bill that has steadily increased the amount of money or property an individual can give or bequeath
without paying gift or estate taxes. It is universally expected that Congress will soon pass new legislation and many commentators
believe that Congress will act to keep the Federal estate and gift tax exemption at $3,500,000, the 2009 level. Minnesota’s estate
tax is assessed on estates of approximately $1,000,000 or greater. Minnesota does not have a gift tax. If your assets, including life
insurance and death benefits, exceed the amount of estate and gift tax exemptions, prudent estate planning can help shelter your assets
and make optimal use of credits and exemptions from estate and gift taxes.
Powers of Attorney and Health Care Directives
A Power of Attorney permits a spouse or other nominated person to act on your behalf, while you are living, and administer your legal
and financial affairs,. A Health Care Directive allows a trusted party to convey your wishes regarding medical care and life sustaining
measures when you are unable to speak for yourself.
Living Trusts
A living trust, also known as a revocable trust, is a trust created while the you are alive. The trust is a legal entity and the trustee
of the trust controls its assets. A revocable trust permits you to transfer assets into your trust, remove them, amend the terms of the
trust and act as your own trustee. The trust document, rather than a will, directs what will happen to those assets upon your death.
Trusts, however, have their own costs and requirements. An estate planning attorney can help explain both benefits and costs of living
trusts and effective alternatives.
Specific Giving Considerations
Wills and trusts facilitate specific gifts of personal property, bequests to individuals and charities, optimal use of the tax deductions
and exemptions, the delay of the distribution of assets to children until they are mature and help in providing care for those with special
needs. Bank and investment accounts, IRA’s, 401K’s and even real property can be titled in ways which avoid a probate process for those
assets after the owner dies.
Estate planning is best begun with a conference with a professional who will analyze your specific needs and wishes and explain the benefits
and consequences of wills, trusts, gifting plans, beneficiary designations, powers of attorney and health care directives
Attorneys:
Ward R. Anderson, Virginia A. Dwyer, Vance B. Grannis, Jr., David G. Keller, Barry L. Wittenkeller, and Paul A. Lindstrom
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